Q

QUALITY
MANAGEMENT
 QUALITY
 A predictable degree of uniformity and
dependability at low cost and suited to
the market (Dr. Edward Deming)

 Degree to which a set of inherent

characteristics fulfills the requirements
(ISO 9000)..
 QUALITY
 Quality is the totality of features and
characteristics of a product or service that
bear on its ability to satisfy stated and
implied needs (ISO definition)
 Stated Need : Contractual Requirement
 Implied Needs : To be identified and defined by the
producer based on understanding of
the system.
 QUALITY
 The totality of features and characteristics of a
product that bear on its ability to satisfy a given
need (American Society for Quality)
 The total composite product and service
characteristics of marketing, engineering,
manufacturing and maintenance through which the
product and service in use will meet expectations
of the customer (Armand V. Feigenbaum).
 QUALITY
PHILOSOPHIES
 CONFORMANCE TO REQUIREMENTS –
CONFORMANCE TO REQUIREMENTS –
PHILIPS CROSBY
 FITNESS FOR USE – DR. JOSEPH JURANN
 NEVER-ENDING IMPROVEMENT – DR.
EDWARD DEMING

 Note: absence of “conforms to

specifications.”
QUALITY MEANS
 CONSISTENTLY MEETING AND
ESCEEDING CUSTOMER NEEDS IN
TERMS OF:
 REQUIREMENTS
 COST
 DELIVERY SCHEDULE
 SERVICE.
 WHY QUALITY
Customer wants
• All stated and implied requirements met
• Defect free product
• On-time delivery
• Value for money

Organisation wants
• Increase in productivity
• Increase in Customer Satisfaction
• Repeat business.
 WHY QUALITY
 Employee wants
 Clear understanding of roles and
responsibilities
 Appropriate training for fulfilling the role
expectation
 Clear guidelines for effort, cost and
schedules
 A yardstick for performance evaluation
 Clear communication with the customer
 Better work-life balance.
 CHANGING VIEWS OF
QUALITY
PAST PRESENT
Quality is the Quality is everyone’s
responsibility of blue responsibility, including
collar workers and management, white-
direct labor employees collar workers, the
working on the indirect labor force and
product the overhead staff
Defects should be Defects should be
hidden from the highlighted and
customers and brought to the surface
management for corrective action..
 CHANGING VIEWS OF
PAST
QUALITY
PRESENT
Identification of Identification of quality
quality problems lead problems lead to
to blame, faulty improvement in quality
justification and
excuses
Defects are caused Defects are caused by
mainly by the people processes

Increased quality will Improved quality reduces

increase project costs overall project costs..
 CHANGING VIEWS OF
PAST
QUALITY
PRESENT
Quality is internally Quality is customer
focussed focused

Quality will not occur People want to

without close produce quality
supervision of people products

Quality is inspected at Quality is built in to the

the end of the product right from the
production cycle initial phase.
SHIFT IN FOCUS
QUALITY CONTROL

QUALITY ASSURANCE

QUALITY MANAGEMENT SYSTEM.

QUALITY CONTROL
 Part of quality management focussed
on fulfilling quality requirements (ISO
9000)
 Process by which product quality is

compared against standards and action

is taken if there is nonconformance
 Involves detecting and fixing defects
(management by outputs)..
QUALITY CONTROL
 Relates to a product or service
 Verifies whether specific

attributes are in or not in a

particular product or service
 Identifies defects with the

purpose of removing defects.

 QUALITY
ASSURANCE
 Part of quality management focussed on
providing confidence that quality requirements
will be fulfilled
 Set of planned and systematic activities to
provide confidence that products and services
will conform to specified requirements and meets
user needs
 Involves preventing defects (management by inputs)..
 QUALITY
ASSURANCE
 Helps establish processes
 Sets up measurement programs to evaluate
processes
 Identifies weaknesses in a process and improves
them
 Primarily a management responsibility,
performed as staff function.
 QUALITY
MANAGEMENT
SYSTEM:
Management system to direct
and control an organisation
with regard to quality (ISO
9000).
 VIEWS OF QUALITY
 The differences in views are mainly
due to the fact that a project has
many stakeholders, each perceiving
quality in one’s own way.
THE VIEWS OF QUALITY
Producer’s view Customer’s view

Quality

Supplier’s view
Provider’s view
 PRODUCER’S VIEW
 For the producers quality means
“Conformance to Requirements”

 This view leads to alignment of

processes in the producers organization
to achieve conformance to
requirements..
 Producer’s View-
Characteristics
 Doing the right thing
 Developing the right product
 Proper understanding of the requirements
 Doing it the right way
 SDLC Processes
 Use of appropriate methodologies e.g.Design
methodology
 Doing it on time without increasing costs..
 Producer’s View-
Characteristics
 Doing it right the first time
 Emphasis on prevention (avoid rework)
 Mindset to strive for perfect work
 Working smarter
 “The purpose of the quality management is
to set up a system and a management
discipline that prevents defects from
happening” – Philip B. Crosby.
 CUSTOMER’S VIEW
 Customer perceives quality if the
product is “Fit for use”.

 Customer’s view is more important

than the producer’s view of
Quality..
 Customer’s view
-Characteristics
 Receiving the right product
 Does the product solve the problem
 Does it meet the objectives
 Being satisfied that the needs have been met
 Whether the product meets the needs?
 Meeting / exceeding the expectations
 Stated requirements and Implied requirements
 General requirements and Specific requirements
 Present requirements and Future requirements
 Being treated with integrity, courtesy and respect.
 PROVIDER’S VIEW

 Organizational view
 Within time and budget
 Productivity.
SUPPLIER’S VIEW
 JIT
 Clear requirements.
 THE TWO QUALITY GAPS
 Producer gap
 Difference between specified requirements and
product delivered
 Can be filled by having right processes to
transform customers requirements into a product
 Consistency in production.
THE TWO QUALITY GAPS
 Customer gap
 Difference between customers requirements
and requirements understood by the producer
 Gap can be avoided by:
 Close interaction with the customer
 Spending sufficient time in the requirement phase

 Using techniques like QFD.

 QUALITY CHALLENGE
 Pre-conceived notions about quality
 Defect free level can not be achieved
 Some defects will always be there (Acceptable
Quality Level - AQL)
 Higher the quality higher the cost
 Quality is documentation
 Quality is standardization leading to
bureaucracy
 Use of standards will kill creativity.
 COST OF QUALITY
 Failure Costs
 non-conformance to requirements

 Appraisal Costs
 evaluation of conformance to requirements

 Prevention Costs
 Training & education, Configuration management,
Planning, Standards, Purchase of tools. Project/Procedure
reviews, Metrics Collection and Analysis, Design
Reviews, Market Analysis, Risk Analysis , Defect
Prevention, Defect analysis, Quality tracking
 process support systems: project tracking tools, CASE
tools..
 COST OF QUALITY
Failure Costs
 Internal (during development)

 re-work
 re-test
 unplanned “scrap”
Cost to Fix - 100 x design stage correction
Appraisal Costs
 Inspections & Reviews
 Testing
 Cost to Fix - 10 x design stage correction..
 COST OF QUALITY
Failure Costs
 External (after product shipped)

 maintenance
 documentation revisions
 problem tracking
 customer goodwill
 lost opportunity
 most expensive to correct
 Cost to Fix > 250 x design stage correction..
 COST OF QUALITY
Prevention (COC)
Investment Cost of
Conformance
Appraisal

COQ

Internal
Failure
(COF)
Losses Cost of Failure
External
Failure
COQ=COC+COF
 COST OF QUALITY

Failure
Failure
% of
Turnover
Appraisal Appraisal

Prevention Prevention
 VISIBLE AND HIDDEN COSTS
•Scrap
•Rework Visible costs
•Warranty costs

• Conversion efficiency of materials

• Inadequate resource utilization

• Excessive use of material

Hidden Costs • Cost of redesign and re-inspection

• Cost of resolving customer problems

• Lost customers / Goodwill

• High inventory
 COST OF QUALITY
Cost of
Prevention
(15%) Cost of
Prevention
Other Cost of
75 % (50%)
Costs Appraisals
Other (35%)
Costs 95
%
Cost of
Cost Appraisals
of (35%)
Cost
Failures
of Cost of
25 % (50%)
Quality COQ Failures
5% (15%)
Before After Before After
QMS QMS QMS QMS
 CORE COMPONENTS OF
QUALITY
 quality is based on customer satisfaction
(preferably delight)
 the organization must define quality before

it can be achieved
 management must lead the organization

through any improvement efforts

 continuous process improvement is very

necessary.
 THE CUSTOMER IS KING
 Customer is the most important person in
any process
 Organization must be dedicated to

EXCEEDING customer satisfaction

 Focus on:
 External customer
 Internal customer.
QUALITY-PRODUCTIVITY
 Increase in quality can directly lead to
increase in productivity:
 the ‘hidden factory’ produces sorting, scrap,
rework, repair, customer complaints
 effective way to improve productivity:
reduce scrap and rework by improving
process
 quality improvement lead to reduced costs.
 MANAGEMENT
INVOLVEMENT
 Consistent, visible interest, commitment and
support
 Establish Quality Policy, Quality Objectives and
communicate to all employees
 Provide suitable resources - personnel, equipment,
materials
 Establish responsibilities and authorities;
communicate to all concerned
 Reviews of QMS, corrective actions,
preventive actions.
EMPLOYEE INVOLVEMENT
 Cornerstone of quality program
 Proper communication between

management and employees

 Employees participate and contribute

to improvement of processes
 Employees share the responsibility for

innovation and quality improvement.

QUALITY QUALITY
CULTURE IS: CULTURE IS NOT:
Listening to customers Assuming you know the
and determining their customer’s requirements
requirements
Identifying cost of Overlooking hidden
quality and focusing costs of poor quality
on prevention
Doing things right the Doing things again to
first time make them right
Continuous process One-time fix..
improvement
QUALITY QUALITY
CULTURE IS: CULTURE IS NOT:
Taking ownership at Assigning
all levels responsibility to one
department
Demonstrating Assigning
leadership and responsibility for
commitment quality to others
Concentrating on Depending only on
defect prevention defect detection
Involving suppliers in Ignoring suppliers.
quality improvement
CUSTOMER RESPONSES
 DISSATISFIED CUSTOMER
(PERFORMANCE < EXPECTATION)
 SATISFIED CUSTOMER
(PERFORMANCE = EXPECTATION)
 DELIGHTED CUSTOMER
(PERFORMANCE > EXPECTATION).
 DISSATISFIED
CUSTOMER:
(PERFORMANCE < EXPECTATION)
(PERFORMANCE < EXPECTATION)
» Customer will go to competitor
» May even have a negative influence on
other potential customers
» Extremely difficult, at times impossible to
get back such customer.
 SATISFIED
CUSTOMER:
(PERFORMANCE = EXPECTATION)
» Customer is retained as long as he has
no alternative
» May not have a positive influence on
other potential customers
» Some effort required to get repeat
business from such customer.
 DELIGHTED
CUSTOMER:
(PERFORMANCE > EXPECTATION)
» A very loyal customer, is retained even if
he has an alternative
» May even have a positive influence on
other potential customers
» Very little / no effort required to get repeat
business from such customer.
 BENEFITS OF QMS
(To the Organisation)

 Clear direction via policy and objectives

 Improved and consistent product quality

 Cost reduction by elimination of waste

and re-work
 Transparent system through records..
 BENEFITS OF QMS
(To the Organisation)
 Improved quality image and credibility
 Reduction in multiple customer audits

 Basis for process improvements

 Better market opportunities.

 BENEFITS OF QMS
(To Employees)
 Clear responsibilities and authorities
 Clear procedures and instructions
 Increased confidence and morale
 Better communication and information
 Improved training and motivation.
BENEFITS OF QMS
(To Customers)
 Greater confidence that requirements can
be met

 Better understanding of the supplier

 Reduced inspections of final products

 Consistent product quality.